Question

A multinational firm that proceeds to raise capital outside of its domestic market is ultimately in search of an issuance - the IPO or SPO. But often issuances must be preceded by listings, in which the shares are traded on an exchange and, therefore, in a specific country market. The listing serves the following purposes EXCEPT: gaining visibility. gaining name recognition. reducing the compliance costs. preparing the market for an issuance

Answer 1

Answer:

C. reducing the compliance costs.

Explanation:

Listing increases compliance costs because there is a lot of compliance by exchanges which needs to be followed.

Note: A compliance cost is expenditure of time or money in conforming with government requirements such as legislation or regulation.